NEW YORK, July 31, 2018 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of GDS Holdings Limited (“GDS” or the “Company”) (GDS, Financial) resulting from allegations that GDS and/or its executives may have issued materially misleading business information to the investing public.
If you purchased GDS securities, and/or would like to discuss your legal rights and options, please visit GDS Shareholder Investigation or contact Daniel Sadeh toll free at (877) 779-1414 or [email protected].
On July 31, 2018, Blue Orca Capital published a reported stating, among other things, that “our research indicates that in reality, GDS is borrowing crippling amounts of debt to enrich insiders by acquiring data centers from undisclosed related parties which are not nearly as valuable as the Company claims. We believe that since becoming a public Company, GDS has borrowed recklessly to siphon off at least RMB 696 million to insiders by inflating the purchase price of undisclosed related party acquisitions.” The report also stated that “[w]e have also discovered evidence of unrelated data center operators selling a substantial amount of empty cabinet space in a building which is supposedly exclusively operated and 94% utilized by GDS. In our opinion, this indicates that GDS is inflating the size of its service area, its utilization rates and therefore its reported revenues and EBITDA.”
On this news, shares of GDS fell sharply during intra-day trading on July 31, 2018.
If you purchased GDS securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/gds-holdings-limited-gds-class-action-lawsuit-74/ or contact Daniel Sadeh toll free at (877) 779-1414 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information
Daniel Sadeh
Bernstein Liebhard LLP
http://www.bernlieb.com
(877) 779-1414
[email protected]
